A. higher prices and lower output
B. higher prices and higher output
C. lower prices and lower output
D. lower prices and higher output
Related Mcqs:
- A perfectly competitive market has ?
A. firms that set their own prices
B. only one seller.
C. at least a few sellers.
D. many buyers and sellers. - In a perfectly competitive labour market firms are wage takers and the marginal cost of labour equals?
A. The average cost of labour
B. The marginal product
C. The marginal revenue
D. The total cost of labour - A monopoly is able to continue to generate economic profits in the long run because ?
A. there is some barrier to entry to that market
B. Potential competitors sometimes don’t notice the the profits.
C. the monopolist is financially powerful.
D. antitrust laws eliminate competitors for a specified number of years.
E. of all of the things described in these answers - If you were running a firm in a perfectly competitive industry, you would be spending your time making decisions on ?
A. how much to spend on advertising?
B. how much of each input to use?
C. What price to charge
D. none of these - A firm in perfectly competitive industry is producing 50 units, its profit-maximising quantity. Industry price is £2 and total fixed costs and total variable cost are £25 and £40 respectively. The firm’s economic profit is ?
A. £35
B. £15
C. £30
D. £60 - For a perfectly competitive firm ?
A. Price equals marginal revenue
B. price is greater than marginal revenue
C. price equals total revenue
D. price equals total cost - Comparing a monopoly and competitive firm, the monopolist will ?
A. produce less at a lower price
B. produce more at a lower price
C. produce less at a higher price
D. produce less at a lower price - A market is defined as perfectly contestable if ?
A. entry to it is costly but exit from it is costless
B. entry to it and exit from it are both costless
C. entry to it and exit from it are both costly
D. entry to ti costless but exist from it is costly - A market is defined as perfectly contestable if ?
A. entry to it and exit from it are both costless
B. entry to it and exit from it are both costly
C. entry to it costless, but exit from it is costless
D. entry to it is costly, but exit from it is costless - If the long-run market supply curve for a good is perfectly elastic, an increase in the demand for that good will, in the long run, cause ?
A. an increase in the number of firms in the market but no increase in the price of the good
B. an increase the price of the good and an increase in the number of firms in the market
C. an increase the price of the good but no increase in the number of firms in the market
D. no impact on either the price of the good or the number of firms in the market
